Sallie Mae Discouraged Over New Education Reform Act

Image Via Luke Sharrett/The New York Times

Just this past Tuesday, President Obama signed a landmark piece of education into law.

The new education reform act overhauls the federal student loan program by expanding Pell Grants and making it easier for students to pay their outstanding student loans after graduation. The bill also increases funding support to community colleges and minority schools.

While the education reform act is great news for students, not everyone is cheering.

Sallie Mae, the nation’s largest student loan lender, believes the new act will lead to company job cuts. Sallie Mae is estimating that one-third of its 8,500 positions will be lost. And Tennessee Republican senator Lamar Alexandar is echoing those concerns. He projects the act will result in over 30,000 job losses nationwide.

According to the New York Times, the Senator also suggested that students would be overcharged on their loans with the proceeds to be used to pay for the health care law and House Republican leader, Representative John A. Boehner of Ohio, criticized both the health and education components of the bill, calling them “two job-killing government takeovers that are already hurting our economy.”

The signing of this bill and the criticism erupting over is not a real surprise considering how controversial many viewed President Obama’s Health Care and Education Affordability Reconciliation Act. But wouldn’t it be nice if those in Washington could agree on one thing, particularly when it involves the future of the American higher education system?